Grainger to focus on selling assets and cutting spending

Shares in Grainger rose 5.5% to 215p this morning, after the UK listed residential company said it was focused on building up its cash reserves.

In an interim management statement the company said it would raise cash from selling assets, reducing purchases and spending on developments and by cutting overheads by 10%. It has already made £122m of sales in the last 10 months with a further £62m either exchanged or in solicitors’ hands and £32m being marketed.

Grainger’s net debt is £1.65bn, giving an estimated loan-to-value ratio of 61%. It still has £411m of debt secured and available to spend.

Robin Broadhurst, chairman of Grainger, said: ‘These are unquestionably difficult times for businesses in the residential sector.

‘It is clear that the adverse market conditions affecting the residential sector will continue for some time to come. However, we remain confident in the long term underlying quality of our residential portfolios and our ability to add value.’